Head of UK residential research at Knight Frank, Tom Bill, said: “The prospect of lower mortgage rates becomes more remote with each release of economic data.
“Stubborn inflation means the five-year swap rate is just under 4.5%, which isn’t good news for anyone hoping to agree a mortgage starting with a ‘3’ any time soon. Higher borrowing costs, increased supply and a wave of owners rolling off sub-2% mortgages agreed in early 2022 are all putting downward pressure on house prices.
“That said, mortgage approvals hit a 17-month high in February, which means there should be a recognisable spring bounce this year. We expect UK prices to rise by 3% in 2024 as core inflation is tamed and borrowing costs eventually begin to fall.”
CEO of Propertymark, Nathan Emerson, said: “A month-on-month growth in house prices is a sign of prosperous green shoots on the run-up to spring, which is historic for its higher demand from buyers and sellers. This is showing strength within the market and signs of a stabilising economy.
“Propertymark’s own Housing Insight Report showed that there was an 18 per cent increase in new properties coming to the market. Furthermore, the number of mortgage approvals made to home buyers increased from 56,100 in January to 60,400 in February, according to recent Bank of England figures, showing that all signs are pointing in the right direction, which should provide aspiring or current homeowners with the confidence they deserve right now.”
Learn more about buy-to-let in the UK with some of our handy area guides, including:
